IP assets and film finance - a primer on standard practices in the U.S.
Economic Research Working Paper No. 74
Autor: Alessio Muscarnera
Autor: Alexander Cuntz
Autor: Matthias Sahli
Autor: Prince C. Oguguo
Año de publicación: 2023
DOI: English
This research summarizes the basic economics of film finance and standard practices in the U.S. movie industry. It shows how risk and uncertainty around new film finance are managed by the private sector and what market-based solutions have been developed to mitigate risk in the sector. Based on a series of expert interviews and exploratory data analysis, the research presents the most common types of financial deals on the ground and reoccurring funding practices for new film production and distribution in the past twenty years, including a discussion of most recent trends and digital changes in the sector. In particular, the research highlights the prominent role of intellectual property (IP) in financial transactions of the movie industry and it discusses policy options in the U.S. and beyond to better leverage IP assets for financing purposes.